The United Nations Environment Programme Finance Initiative (UNEP FI) released the third progress report on the Principles for Responsible Banking (PRB), reporting that PRB signatories representing nearly half of global banking assets are increasingly embedding sustainability into strategy, governance and client relationships, and that this is associated with measurable financial advantages. Analysis by the MSCI Sustainability Institute found that 61% of PRB signatories lead their industry in managing financially material sustainability risks and opportunities, compared with 23% of non-PRB banks, and that PRB banks paid one percentage point less on average for equity and debt capital. The report also points to growing regulatory momentum for practices such as impact analysis and sustainability target-setting, citing UNEP FI analysis that regulators in eight of 12 Asia-Pacific jurisdictions are embedding sustainability more systematically into their mandates. It identifies uneven and slow progress overall, with signatories highlighting difficulty in gathering social and environmental data and a resulting need for more decision-useful corporate disclosures, alongside political and economic headwinds in some jurisdictions.
United Nations Environment Programme Finance Initiative 2025-10-15
United Nations Environment Programme Finance Initiative publishes third Principles for Responsible Banking progress report linking PRB adoption to 1 percentage point lower funding costs
The UN Environment Programme Finance Initiative's third report on the Principles for Responsible Banking shows increased sustainability integration among signatories, representing nearly half of global banking assets. MSCI Sustainability Institute analysis reveals 61% of PRB signatories excel in managing sustainability risks, with PRB banks enjoying lower capital costs. The report highlights regulatory momentum in Asia-Pacific but notes uneven progress and challenges in data collection and corporate disclosures.